- The USD/JPY pair rose on Monday, following a surge in Japan's stock market, after the country's ruling coalition won a clear victory in upper house elections, fuelling expectations of more monetary stimulus.
- The Bank of Japan is expected to provide additional easing to keep interest rates low and the yen weak to make sure stimulus spending can gain traction.
- Currently, the pair is trading at 102.67 levels, it is set to advance further towards 103.50 and later 104.00 levels in the short term.
- To the upside, the strong resistance can be seen at 103.26, a break above this level would take the pair towards next resistance level at 104.00.
- To the downside immediate support can be seen at 102.04, a break below this level will open the door towards next level at 101.30
R1: 102.75 (38.2% Retracement Level)
R2: 103.26 (July 24th high)
R3: 104.00(Psychological levels)
S1: 102.04 (50% Retracement Level)
S2: 101.30 (61.8% Retracement Level)
S3: 100.50 (Daily lows)
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